Bill would make DACO fraud detection unit a permanent entity

Rep. José Pérez Cordero

By THE STAR STAFF

Rep. José “Che” Pérez Cordero, who chairs the Judiciary Committee in the island House of Representatives, announced on Monday the upcoming filing of a measure aimed at creating, by law, the Unit for the Detection of Fraudulent Schemes Against the Consumer, which would be attached to the Department of Consumer Affairs (DACO by its acronym in Spanish).

“Fraud schemes have been on the rise for the past five years. With the use of artificial intelligence algorithms, these schemes, which are designed to defraud our consumers, are expected to triple,” Pérez Cordero said in a written statement. “Alerting the public is part of the actions we must take to mitigate these schemes. That is why, in 2023, DACO created the Consumer Fraudulent Schemes Detection Unit, whose function is to identify and report consumer fraud.”

According to the Federal Trade Commission, in 2024 fraud schemes cost consumers in the United States, including Puerto Rico, a record $194.5 billion; senior citizens, with losses of $160 million, were one of the most affected groups.

“The Unit was created under an Administrative Order, which means it can be eliminated at any time,” the legislator said. “However, aware of the need for platforms that inform the public about these harmful schemes, we have decided to submit legislation to make the Unit permanent, under the law. This ensures the continuity of a valuable initiative that has served as a tool in the fight against fraud in Puerto Rico.”

The new fraud disclosure policy implemented by the Unit states that consumers will be constantly alerted about new forms of fraud.

The Unit is composed of the five regional directors (San Juan, Arecibo, Mayagüez, Ponce and Caguas), among other technical staff from DACO.